Micron Technology, Inc. (NASDAQ: MU), fell over 5.4% on December 1^st, 2016 (Source: Google finance) following its peers as the technology stocks have been under pressure. The fall is mainly due to the significant international exposure among tech companies that makes them more vulnerable given the recent rise in the U.S. dollar. However the S&P 500 index fell much as the gains in the energy and financials sectors had offset the losses in technology, utilities and consumer staples. Moreover, the defensive sectors are pressured as interest rates rise, measured by the yield on the 10-year Treasury which climbed to a 16-month high of 2.44%. The market is also consolidating after the strong run-up since early November that has contributed to the selling pressure. The Fed meeting in two weeks will direct the market movements

Micron Technology remains a favorite stock among analysts which has an average rating of 2.15 based on Thomson Reuter’s scale of 1-5. Susquehanna analyst has reiterated the positive rating on shares of Micron Technology and upped the price target to $23 on the back of higher ASP trends and accretion from the Inotera acquisition. Additionally, ASP trends have improved MU’s CY17 earnings power to over $2. Inotera, is expected to provide at least 2% upside, which is now reflected in the updated CY17 EPS estimate of $2.10. The analysts are projecting an average revenue estimate for MU as $3.77 Billion in the current quarter. MU will report the first quarter results on 21^st December, 2016 and generated 41.2% returns in just last six months (as of December 1^st, 2016; Source: Google finance).

Even UBS is bullish on stock and reported that MU has shown better fundamentals. The group now forecasts a better revenue of over $3.975 billion during the quarter from earlier guidance of $3.55 billion to $3.85 billion. The gross margins are anticipated on a high end side of the guidance at 23% to 25.5%. UBS believes this better performance could be driven by DRAM pricing during the quarter, leading to better average selling price of the product. Inotera acquisition would also drive gross margins of MU by over 200 to 300 basis points.

According to tipranks.com, 18 analysts has covered the stock while recommend a “Moderate Buy”. MU has an average price target of $20.92, which is a further upside of 13.20%. UBS issued a target price of $24 on the stock.